This $5M Deal Was A Trap! -- How Bad Deals Will Destroy Your Cashflow | Subto Show

On today's Wholesale Hotline (Subto Edition), Pace explains why “spreadsheets are stupid” and instead uses a simple cash-in, cash-out method to underwrite even multimillion-dollar deals. Show notes — in this episode we'll cover: Pace breaks down how most investors overlook cost of capital, showing how a $1.5M cash investment should earn at least 12%—otherwise, it's a bad use of funds. A $5M Section 8 portfolio that seems promising at first quickly unravels under scrutiny due to underestimated expenses, inflated future rent projections, and deal euphoria. Using creative finance—including DSCR loans, seller carries, and transactional funding—Pace transforms a bad deal into an $8K/month cash-flowing asset with no money out of pocket. He shows why traditional investors get stuck using old tools like the BRRRR method, while creative finance unlocks better returns, tax benefits, and flexibility without needing personal capital.   ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ ☎️ Welcome to Wholesale Hotline & Subto Breakout✌️✌️! ☎️ Need discounts and free trials!? Check this out for the softwares/websites/contracts/scripts/etc we use in our business: ✌️ https://shor.by/pace-youtube ✌️ ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 🗝🗝 FREEBIES 🗝🗝 📑 FREE assignment contract: https://www.pacejmorby.com/assignment... 📑 FREE wholesale contract: https://www.pacejmorby.com/wholesalec... 📑 FREE cold calling script: https://www.pacejmorby.com/coldcalling 📑 FREE cold texting script: https://www.pacejmorby.com/text 📑 FREE foreclosure script: https://www.pacejmorby.com/foreclosure 📑 FREE disposition checklist: https://www.pacejmorby.com/dispo 📑 FREE comping cheat sheet: https://www.pacejmorby.com/comping 📑 FREE guide to pulling a water list: https://www.pacejmorby.com/water 📑 FREE guide for taking photos on appointments: https://www.pacejmorby.com/photos 📑 FREE seller lead form for talking to sellers: https://www.pacejmorby.com/seller 📑 FREE access to my upcoming ebook: https://www.pacejmorby.com/exitstrate... 📑 FREE profit and loss template: https://www.pacejmorby.com/profitloss ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ Want a site to host your podcast? We use PODCASTICS!: https://www.podcastics.com/?&_rid=12536  ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 👽✌️ Learn from Pace and Cody 👽✌️ 🔸Follow Pace on IG: https://www.instagram.com/pacemorby 🔹Join our free dope creative finance Facebook group: https://shor.by/8vxk 🔸Dive deeper within my mentorship: https://go.subto.com/pace-sunday-service 🔹Watch Sunday Service live on my YouTube every Sunday at 7 PM PST 🔸Tune in to Wholesale Hotline live on my YouTube every Monday 5pm PST ⚠️ #CreativeFinance #Investing #Wealth #RealEstateInvesting #Wholesaling #SubjectTo ⚠️ ➖➖➖➖➖➖➖➖➖➖➖➖➖➖➖ 🚧🚧🚧 DISCLAIMER 🚧🚧🚧 ❎ I am not a CPA, attorney, insurance, contractor, lender, or financial advisor. The content in these videos shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a Podcast for entertainment purposes ONLY ❎